How to sell a new product on the market. Encyclopedia of Marketing
– this will not be a story about sales, not about marketing, and not even about advertising. Rather, about everything together, and from a slightly different point of view. And forgive me for such a title (HOW to promote and sell a product), but a significant part of the text is about why and how important it is to promote your goods and/or services, and what it represents. Although, of course, we will also talk about HOW to promote and sell the product.
How to promote and sell a product: inform yourself - step No. 1
Let's start with the fact that I do not agree with the opinion that in business demand determines supply. Tired of hearing that no one is buying, sales are falling, business is collapsing. Yes . Promote. Create demand. It's not easy, no. But nothing simply happens. When Bell invented the telephone, was there a demand for it, or what? Or Watt's steam engine? No, no one wanted to buy. Simply offering a product on the market is not enough. We need to promote it.
In my city there was a small restaurant, not in the most prominent place, but with the most delicious food in the world, it seems. And what? Broke. Quality product, quality service, no use. They didn't promote it. We thought that if we do everything well, people will join us. No, they won’t catch up. They need to be invited. They can pull themselves up for the iPhone. He is truly the only one like him in the world. But your restaurant doesn't. And your grocery store, and a wedding services bureau, and a photo studio, and...what else are you doing there.
A business should always work at its best. You must develop and promote it. You see, there is such a thing - if you sell 10 shirts a day, 8 of them (if not 9) cover your costs. Your profit is 10 shirts. If you do not constantly promote your business, it is not a fact (far from a fact!) that you will have time to sell that very 10th shirt. A hotel with half the rooms booked will not be profitable. We need to sell at least 90%. But as? Just wait for the tourists to come? The answer is obvious.
I hope you get the gist of everything stated above. I'll try to say this briefly. The fact that you will advertise, promote and sell your goods and services is understandable. It would be stupid of me to write an article about how you should advertise. The point is different - if you decide, you should squeeze everything you can out of it. And this must be done constantly, in different ways, without being satisfied with what has been achieved. This is the only way a business can be successful. The process of promoting and selling goods is continuous.
There is such a truth - . That is, not from production (or from purchasing, for example, in trade), but from ensuring sales, promoting goods, and finding buyers. Another point is that, of course, there are consumer goods. It’s probably unnecessary to create demand here, after all. The question is different - they make the least money. Therefore, along with goods and services of mass demand, we find a way to promote our other goods and services. A trivial example: when selling bread, a merchant hopes not to sell the bread itself, but to attract a buyer to buy some other products.
How to promote and sell consumer goods?
How to promote and sell a product: methods and channels of promotion and sales stimulation
This is, in fact, the answer to the question from the title. Here are several modern (and not very modern, of course, but relevant) ways to promote a product and stimulate demand in the market. Before listing them, I would like to draw your attention to the fact that no one has canceled the analysis and control of your business processes. I want to say that you simply must monitor which of the methods listed below works best in your niche and specifically in your business, and turn to it more often.
So, a list of ways to promote products and stimulate their sales on the market:
2. Personal selling – ability and/or training of sellers;
3. PR (public relations). This includes various exhibitions, events, press releases, presence in the media on various occasions, etc.
4. Branding – creating a successful and well-known trademark (which is not so easy, of course);
5. Merchandising – the art of sales techniques, display of goods, visual effects of the product line;
6. BTL promotions and events;
7. Franchising – product promotion, sales growth and brand development by transferring the rights to use the brand and business technology to an outside party;
8. Telemarketing – sales by telephone;
9. Internet marketing.
The topic of Internet marketing is very broad, we will analyze it more than once. However, like everyone else.
This is, of course, not an exhaustive list. You can use everything that will help you promote and sell your product and/or service on the market, i.e. everything that, in principle, can influence the target audience. You will find different ways, the main thing is to do this.
If you have opinions and thoughts on this matter, please share in the comments.
Any company, regardless of its size, scale of production or market share, is constantly fighting with competitors (the same companies) to win the attention of consumers to its products and, as a result, increase their sales. Success in this struggle depends on how accurately the company selects the set of necessary techniques to promote its own product on the market.
Promotion can be defined as a special activity of a company aimed at generating positive consumer interest in its product. Promotion also implies a set of measures to maintain this interest, which directly affects sales.
Also, promotion can be characterized from the point of view of marketing communications, where it is a key connecting element of the company's marketing, which ensures that the marketing message is conveyed to the consumer.
In general, promotion can be understood as any activity of a company in transmitting information about its products and services to the consumer, as well as reminding the public about the brand, mission (formalized in the product), social activity and so on.
Product promotion is important integral part the company's marketing complex. Like any marketing activities, promotion must be built within the framework of a clear plan drawn up on the basis of the overall strategy of the company.
A set of measures to promote a product or service includes a number of means:
Public relations involves creating a positive image of the company in wide circles of the public.
Personal selling involves constant contact between the seller and the buyer.
Sales promotion implies a set of measures to increase sales. In a general sense, it consists of increasing the effectiveness of other means of promoting a product.
Service services - implies the development and offering of additional services and goods that accompany the product offered by the company, as well as its warranty service. The importance of this means of product promotion is very high when we consider large companies with a wide range of high-tech products.
Let's look at some of them in more detail.
Public relations (from the English Publicrelations, “public relations”, hereinafter referred to as PR) is a non-commercial form of communication, an effort planned over a long period of time, with the goal of creating and maintaining friendly relations and mutual understanding between a company and its public.
The main forms of PR are speeches in the media (TV, radio, articles in the press), press conferences, organizing shows, sponsorship and charity, corporate identity, prestigious advertising (souvenirs bearing corporate style attributes in their design, brochures, booklets, company magazine).
PR technology includes four components:
Analysis, research and problem setting;
Development of a program and budget;
Implementation of the program;
Evaluation of results and refinement of the program.
The most universal way of PR can be considered publications about a company in the press. Relations with the press (massmediarelations, pressrelations) are an important part of PR. Any means of PR always complement other forms of communication, while solving two main tasks: maintaining a balance of interests of the company and society, as well as eliminating the negative impact on the company’s image of various negative events and unfriendly rumors. Achieving positive perception of a company's products (brand) through PR is reinforced by advertising (if not lost due to more aggressive actions of competitors).
The advertising campaign program for the target market includes such issues as the goals and objectives of the advertising campaign, choosing the type of advertising for its distribution channel, developing an advertising message, determining the advertising budget, and methods for assessing the effectiveness of advertising.
Advertising goals can be informative, persuasive, reminding, which depends on the strategic objectives of the company, the goals and objectives of the marketing program; characteristics of the target market identified as a result of its comprehensive research; phases life cycle goods; the degree of consumer awareness about the product and the company itself. Information goals usually correspond to the phase of introducing a product to the market. Information advertising brings to the consumer information about a new product (new option), explains the methods of use, application of the new product, describes the qualitative advantages of the new service, etc.
The main task of advertising in the implementation phase is to create primary demand in order to then develop it (growth and maturity phases). For the growth phase, the goal of persuasion is relevant, especially in a situation of increasing competition. At the maturity phase, advertising pursues the goal of reminding about the product, playing a supporting role in a situation of a favorable state of sales level.
When drawing up an advertising campaign plan, the advertising distribution channel is selected taking into account a number of factors, such as cost, possible coverage and characteristics of the target audience, content and goals of the advertising message, features of the advertising object, infrastructure and degree of development of the target market media, etc.
Depending on the medium, the type of advertising is distinguished: print advertising (in newspapers, magazines, directories and other printed publications), television and radio advertising, outdoor advertising, advertising on transport, etc. If the advertising message is delivered to the target audience by mail, then this may be advertising to every home or direct mail advertising (directmail). Each advertising distribution channel has both advantages and certain disadvantages. For example, radio, which provides mass coverage and low cost, is at the same time inferior to television in terms of completeness of perception and duration of impact on the respondent. Direct mail advertising, with a high degree of selectivity of the target audience, only provides a 20-25% probability of “hitting the target” of the advertising message, etc. Determining the volume and characteristics of the target audience is no less important for planning an advertising campaign than the cost of advertising space or time in different MASS MEDIA. It should be taken into account that the target audience can be calculated, effective (potential clients in contact with this advertising medium), actual (potential clients who responded to the advertisement).
Preliminary research is carried out:
By surveying consumers to determine their reaction to several versions of an advertisement (video), for which appropriate criteria are developed;
Using the package method, i.e. showing respondents a number of advertisements (videos) followed by discussion of what they saw. The most memorable options are considered successful;
Using laboratory tests, the conduct of which involves determining the reaction of respondents to the proposed advertising options.
The impact of advertising on the level of sales can only be assessed if all other factors on which sales depend are controlled: price, the level of quality of the product, the effectiveness of distribution channels, the influence of competitors, the macro environment, etc. Advertising attracts consumers' attention to a product and makes them want to purchase it. But additional stimulating influences are needed for desire to turn into a real purchase of goods and to achieve sustainable long-term sales.
The objects of stimulating influences are:
Buyers (consumers);
Business partners;
Sales staff (including our own).
Methods of stimulation are selected in accordance with the object of stimulating efforts.
The following are organized for buyers:
Competitions with gifts, win-win lotteries;
Credit coupons and various discounts are offered;
Providing trial samples is used.
Business partners are usually encouraged to cooperate during business meetings and specialized exhibitions. Incentives for sales personnel are aimed at effective cooperation with wholesale and retail sales intermediaries, as well as maintaining the proper level of work of our own personnel involved in sales activities.
A widely used method of promoting a product to the market is personal (personal) selling. Personal selling is also a type of direct marketing. Personal selling is an expensive but very effective way of communication policy. Organization of personal sales includes searching for potential buyers (customers), conducting presentations, negotiations
Each of the considered means in one way or another affects how effectively the product is offered to the consumer, how loyal the consumer is to it and what profit the company ultimately receives from its sale. The procedure for selecting a competent composition of these products, depending on various conditions and market situations is called a strategy for promoting a product to the market.
Low-budget marketing... Every business owner's dream. And it would be even “dreamer” - if at the same time the recognition of the company (product) would grow exponentially... and the sales curve would bend steeper and steeper every day...
But the reality is that marketing budgets ( advertising, PR - highlight what is necessary) are laid out using methods known only to the “layout designer” himself ( read - marketer, advertiser...) laws... And, with rare exceptions, they are a weak reflection of the reality and the company’s need for contacts with the target audience.
They say that the real professionalism of a marketer lies in bringing a company (product) to the market without a budget... Well, or with the minimum necessary cash injections.
I don’t know how true or controversial this statement is - I can’t imagine Coca-Cola, Mars and Adidas in the market without budgets... but still. The fact remains, and the realities of the market are such that not everyone has the budget to pay for “multi-layered” advertising campaigns. In addition, due to the still prevailing mentality of Russian business owners, who are skeptical and distrustful of their own marketing services, small and medium-sized businesses are not yet ready to part with money for advertising and other marketing communications ( because there is no clear understanding of “how will all this come back to us...”).
So, what low-budget ways do you use to market a company or product?
I can offer you tools that I have used quite often in my practice, which have been tested by the market and have shown their effectiveness, and which have helped me out more than once.
1. Barter. Many people don't like this word. Especially in accounting departments. I don’t really like it myself. But I must admit that such a cooperation scheme is quite common in the Russian business segment, even among large and respected players (for example, such as Rosinter). Of course, if you have something to offer your potential partner. And, obviously, the value of your offer for your partner should be no less than what you expect (ask) from him.
2. Exhibitions. Yes, your industry exhibitions are a good reason to promote yourself in your own market among your partners and target audience. And no, you don’t have to buy an expensive place and set up a stand. Be more creative - push the boundaries of your imagination. There are many other ways to introduce yourself at the exhibition, distribute your contacts and collect the ones you need.
Carefully study the proposal of the exhibition organizer, the site where the exhibition will be held - look for opportunities for a low-budget “performance”.
This could be simply placement in the exhibition catalog, posting on the website, renting 2-3 square meters at the entrance to the exhibition, placing a girl/boy with the distribution of samples (or just some “goodies”-useful things with your contacts), investing in a package participant, organization of a photographer with instant printing of photographs against a press-wall background with your logos, and so on - think of it! (by the way, such participation can also be closed through barter)
3. Internal events. This means your personal events for your target audience, for your potential clients. Create some kind of useful event for your customers - what is their pressing problem? What critical question do they have that they typically pay money to answer?
Give them this answer for free! Perhaps in the form of a mini-seminar or micro-training for 4 hours, maybe together with a representative of an authoritative opinion for them (for example, if this is medicine, then this can be the head doctor of a serious clinic, if trade - the manager of a large network, the head of the tax office, top - bank manager, etc.).
You can agree on holding such a seminar with the owner of the premises, who is also interested in the audience that overlaps with you, but is not a competitor to you in terms of services. For example, it could be a cafe, club or restaurant that is simply interested in visitors and sales of the kitchen and bar. In addition, in your pre-PR campaign to recruit participants for your event, you will promote them, as well as in post-releases and reports after the seminar. Don’t forget to mention this in negotiations with the site owner.
4. External events. Many people forget about the most useful semi-informal get-togethers or, conversely, professional “meetings” of their decision-makers (people who make decisions on cooperation) in the form of various chambers, clubs, communities, and so on.
Look for it - there’s probably a Chamber of Commerce and Industry in your city that periodically organizes parties for CEOs or financial directors. Look for different fashionable features, such as a mafia gaming club for HR directors. For accountants, these could be seminars conducted by the local Federal Tax Service. Find out where the marketing directors in your area hang out (if you offer printing, design, or advertising services, for example...). Find out where the logistics directors live (if you are a courier service or transport company).
If it’s completely boring in your city and poor decision makers stupidly go home after work - see the point above: come up with it yourself! Your own events. Finally, create your own club of mafia players for ____ ( insert the position you need)! Your expenses include purchasing or ordering printing of special cards, blindfolds and beautiful rules on A4 sheets!
Any restaurant in the city will be happy to lend you space on Wednesday evenings for such a theme. In addition, it is not necessary to make such evenings free. Freebies are relaxing. And the mafia club requires discipline ( read the rules on the net). Therefore, take 100-500 rubles from the players. per evening (the amount should be such that it can be dealt with painlessly, and the value received in return will significantly cover such a “loss” from the wallet).
5. Press releases. Make it a habit to issue press releases about your company's activities every Tuesday. Releases should not be large and voluminous - make 1/2 of a printed page of text plus a couple of key sentences about the company.
Look for news updates within the company all week! Set up a system for collecting and processing news and, in general, everything that happens in the company. Any sneeze should flock to your department. And you can decide for yourself whether to air it or not ( together with the business owner, of course).
And regularly distribute your press releases online and through all communication channels available to you: website, corporate newspaper for clients, newsletter, notice board in the sales area or reception area... Register your press releases in free press release directories ( they are easily found in any search engine ). Send your news to interested publications in your region - both print newspapers and magazines, and online media.
6. Publications. The same goes for longer-form press publications—provide free content to journalists and media outlets. These could be interviews on your market, on some problem of your consumers, analytical reports and cross-sections, statistical data ( many media like different statistical collections), just interesting publications “on topic”. Invite the leading publication in your region to organize and maintain some special interesting section - and supply your section with relevant and fresh information on a weekly basis.
Everyone needs interesting and useful content! Finally, ask your customers or potential clients - what are they interested in about your topic, what do they want to know about?
7. Cases. Or case study. Or success story. The nature is slightly different, but the point is, in principle, one thing - to show your target segments, using an example, a solution to THEIR problems. Write stories using the formula “Problem - Solution - Result”, “how bad it was before - and how wonderful it was after”, the principle, I think, is clear. Stories in this vein are very attractive and attractive.
8. Reviews. Customer feedback is something you should collect from the time your company is still a business embryo. Especially if your client is a more or less well-known company in your region. On branded colored letterhead, with a beautiful seal, with the signature of the first person or key top manager of your client.
Collect and store your reviews in a separate folder, each in a separate file, treat them with care and respect -) Well, without fanaticism, of course. You just have to understand that these are the results of your work. These are your “thank you, you helped us a lot” from your clients. And don't forget to digitize all your customer reviews. Only exactly, in color, with high resolution and readable text.
9. "Word of mouth". Involve the local population in promoting your company, products, brands. It’s no secret for a long time that “sundress” works best in the services market. But in order for your sundress to work, you need to work on it! What did you think? They just launched a rumor among the people - and they picked it up and carried it to the masses? Of course, it would be great if everything were so simple - no one would spend money on expensive TV and radio advertising, but would only be engaged in “injecting” rumors into the masses.
The simplest and most effective thing is to remember yourself. What information have you personally ever passed on “by word of mouth”? It was probably something shocking, out of the ordinary, or terribly funny, or curious, or disgusting, or improving some aspect of your life... Do you feel what I mean? Yes, that's right - it should be something that hooks.
But here, be careful - your legend should support and improve the image of your company/product, and not destroy it.
10. Free consultations, demonstrations, samples. The name speaks for itself. Don't be afraid to give! Nobody likes to buy a pig in a poke. Everyone wants to try first and then decide to buy.
Here your marketing must work more closely than ever with sales. Because it’s not enough to just give it a try - after that you need to constantly ask at a given frequency: “Well, did you like it? Let's buy full version. Did not like? Why? and so on...". Keep in touch, monitor your potential client. Offer him special offers, inform him about new products, promotions, discounts.
But don’t be afraid to identify and cut off the “eternal tryers” - these are those who initially know that they will never buy, but will never refuse a freebie... You shouldn’t waste your precious time on such “under-customers”...
11. Atmosphere and design of the client office/service hall, reception area, meeting room/. In these premises, EVERYTHING should speak about your professionalism, the quality of your services and the specialists who, in fact, provide these services, inspire confidence in you, your company, your product - every little thing and every element.
Finally, remove all these antediluvian certificates and gratitude from 2003-2007, issued to you by someone for something! Leave just one - but a normal, fresh, up-to-date solid professional license, or certificate, or diploma, or whatever your specific requirement is...
No wobbly chairs, ragged tables, burnt sofas, cracked glass surfaces... Well, remove this piece of furniture if you don’t yet have the money to reupholster, repair, or buy a replacement. It’s better to throw in a couple of frameless “pears” for one and a half thousand rubles, if you need to somehow take up space - well, even if no one sits on them, but they will give a certain “your dude” freshness and dynamism to your office.
12. Gift certificates, loyalty programs. That is, do it so that the client wants not only to come to you again, but to bring someone else with him next time. By the way, this also works with corporate clients. You just need to think a little longer... And ask around/observe the clients to see what might stimulate them to take such an action.
An excellent example is large cosmetic chains, fitness clubs, mobile operators ( least). Copy this ready-made and perfectly working model and apply it to your business - what exactly is stopping you? ( The first gift certificates can be printed on a color printer, if things are really difficult... if you get rich, you can print plastic, no big deal!)
In addition, if you have a representative office of any federal discount and coupon network in your city ( like Groupon, but there are a lot of them now), or perhaps there is a local company with this kind of operating principle, contact them and let them plan for you advertising campaign. They won’t take money from you for this, but you will clearly see how much you can earn in one day of such a promotion with zero investments in coverage and attraction. The decision is yours.
13. Cross-marketing promotions with partners. Organize joint promotions with your colleagues, with whom your products can complement each other for the same target audience ( “a printing house blah blah and a furniture salon blah blah - only from May 1 to May 20 they are holding a joint promotion: buy office furniture and get an 80% discount on any advertising printing!”). Promote them well by region ( You can also take the media as partners), share contacts with each other, and work with the resulting client base, each in its own format.
14. Competitions, quizzes. This is about the same thing as cross-marketing, only in a more entertaining format. Each partner performs its own function, makes its contribution - provides prizes of different formats and nature, covers the event, prints banners, programs the web, handles logistics, takes photographs, shoots videos, feeds, clothes, etc. But someone must take on the role of organizer and coordinator. For example, you, as the initiator and creator of the concept ( which you pre-send to the partners you need for your contribution).
15. Cultivate feedback from your clients. Establish relationships with them. And develop them. Invite them to express their opinion on any matter - about your services, about the same services on the market in general, conduct surveys, call to action in your communications, provoke them to respond to your messages, conduct surveys on the website or jointly with partners, give them free advice and ask to rate them, get their consent to receive your marketing materials (only useful for them and not often!).
Final word
Of course, all these low-cost marketing methods do not require a lot of money, but they do require the investment of other resources - time, effort, patience, energy, imagination and your knowledge.
Yes, and you shouldn’t be scattered about all of the described promotion methods - try each of them in turn, see - which works best for you, brings the most clients? Focus on the few that are most optimal for you in terms of the combination of time and labor costs/number of completed deals.
And one more tip that I would like to mention, but which everyone often forgets... Due to confusion and immersion in routine, probably...
Promote and sell not your company and your products, but the “emotion” and “result” of using your services and contacting your company!
Few people need the services of a beauty salon, but a beautiful haircut and a perfect manicure - yes! I am not at all interested in the services of an advertising agency, but an increase in sales by 20% in 6 weeks - let's discuss this soon! There are plenty of cheap tours to Egypt and Greece, but complete disconnection from current worries and immersion in absolute relaxation for two weeks – there are few such offers! (if they exist at all...)
So stop, colleagues, disconnect from the hustle and bustle, take a time out for the day, go to the park, turn off your cell phone, sit on a bench, relax, look at the fountains, watch people - low-budget ways to attract clients are on the market, you can come up with them. It's just that in pursuit of feverish sales and abstract results, we don't always see them.
P.S. And don’t forget that attracting a new client costs FIVE times more than retaining an old one. Therefore, do not forget about your client after the first sale (obtained by one of the methods discussed in this report), in fact, this is where work with him is just beginning!
3.3.1. Promotion means.The promotion of goods to the market refers to the use various methods, with the help of which the seller can convince the buyer to buy this product. Product promotion methods are:
The following means of promoting products to the market are distinguished:
- rewarding sellers for good work;
- application of special discounts to prices for poor sales of goods;
- distribution of free samples of new products;
- free attachment of a small souvenir to the product;
- organization of exhibitions;
- issuing coupons that provide an opportunity to purchase goods at a discount;
- holding competitions and lotteries.
Personal (personal) selling. It represents regular contacts between the seller and the consumer. The seller, when servicing the client, must provide him with all the necessary information about the product and how to use it correctly.
Advertising. It represents paid messages about products that are distributed through the media. Advertisements are aimed at calling for the purchase of a particular product. An advertisement consists of two main parts: the text part, and the artistic, graphic part of the advertisement. Advertising must convey the necessary information, be transmitted a sufficient number of times, promote the sale of products, and generate income that covers the costs of its creation.
Public Relations. Most businesses benefit from good public relations. That is, it is necessary to support a good relationship with the local population, sponsors, government agencies, and the media. Most consumers prefer companies with a good reputation that have managed to create a favorable image of a reputable company.
Sales promotion. This tool increases the effectiveness of advertising and personal (personal) selling. Sales promotion includes the following activities:
Service. Satisfying customer requests, quality service customers can guarantee new orders in the future. Service creates trust in the company. An example would be establishing a warranty period for a product, the possibility of returning or exchanging a product, or eliminating a malfunction.
Creating a positive public opinion. This method is free communication about a company or its products through the media. For example, a speech by a company representative on television or radio, a press conference.
A manufacturer in a market economy tries to achieve an advantage over competitors with the help of advertising and other sales promotion techniques. The success of a business is determined not only by the size of the initial capital, but also by the quality of business communications. Types of business communications are very different. This includes: conferences, exhibitions, seminars, presentations, press conferences, interviews, round tables, business lunches, negotiations. But the most basic type of communication is advertising.
Purpose of advertising- increase the market share of the product manufacturer and strengthen consumer loyalty to the product. This means that the firm hopes to shift the demand curve to the right and at the same time reduce its price elasticity.
Advertising is any appeal from the manufacturer, seller or their representatives to a potential consumer-buyer. In the mid-1990s, the advertising market in the United States was estimated at $250 billion a year (it has tripled over the past 10 years); in France at 30; billions of dollars (tripling in 7 years); in Russia at $1 billion, but the tripling occurred in two years. The turnover of the Russian advertising market in 1996 increased by 10% compared to 1995 and amounted to 1.1 - 1.5 billion dollars. At the same time, the turnover on television reached 344 million dollars, the press accounted for about 700 million dollars, and outdoor advertising accounted for about 80 million dollars (“Advertising Business” by E.A. Utkin).
Exist different kinds advertising messages: informational, reminder, image. You can also highlight social advertising that addresses universal human values (preservation of the environment, health, etc.). Information advertising brings to the attention of the consumer information about the manufacturer, the product and its qualities, methods of purchasing the product or receiving additional information. The ultimate goal of information advertising is to create or increase sales of products.
Reminding advertising creates the effect of a constant presence in the market and promotes recognition of a company or product. Reminder advertising is aimed at maintaining product sales, especially during periods of falling growth rates.
- daily newspapers, which, in turn, can be divided into business, entertainment, central and local; weekly publications are also divided into business, socio-political and thematic;
- illustrated monthly publications primarily of a popular science or entertainment nature;
- technical and professional publications;
- advertising and information publications can be free, have a symbolic or very real price.
Important place is occupied by advertising on television. The disadvantages of advertising on television are that information is poorly remembered, and the abundance of advertising blocks irritates consumers, and this reduces the effectiveness of television advertising. Radio is significantly behind television.
Outdoor advertising plays an important role:
posters, stands, billboards, displays, as well as direct-mail (direct mailing of advertising materials).
An intermediate position between advertising in the media and sales promotion is occupied by point-of-sale advertising (PSA), which accounts for an average of 5% of a company's marketing budget. It covers: information activities of the store itself (posters, posters, panels, video cassettes, radio announcements), techniques used by the manufacturer (racks, stands, video systems, carts, smells), joint events of manufacturers and sellers (staff uniforms, exposition, containers, bags and other packaging materials).
When forming an advertising budget, it includes the costs of creating advertising materials and their placement in the media, as well as associated administrative costs ( wage advertising department employees or consultant fees). In accordance with another approach, a single marketing budget is formed, which includes expenses for research (on average about 15% of total expenses), sales promotion (on average about 50%), advertising (about 30%) and public relations ( around 5%). 1 - research costs;
2 - sales promotion expenses;
3 - advertising costs;
4 - public relations expenses.
3.3.3. Product distribution channels.
Distribution channel (sales) - a set of methods for promoting a product from the manufacturer to the consumer. Types of distribution channels for goods:- Producer -> consumer. This channel is a direct, direct sale of a product by the manufacturer to the final consumer. For example, a private bakery sells its bread in its own store.
- Manufacturer -> retailer -> consumer. In this case, manufacturers first sell their product to retailers, who then resell the product to the final consumer. Most often, this channel is used to sell clothing.
- Manufacturer -> wholesaler -> retailer -> consumer. This distribution channel is suitable for selling household appliances.
- Manufacturer -> sales agent (broker) -> wholesaler -> retailer -> consumer. This distribution channel is used in those industries in which the sale of goods is carried out by specialists.
3.3.4. Transport.
Distribution of goods includes the following costs: transportation costs, storage costs, administrative costs, and other distribution costs.
The costs of transporting products constitute a significant part of total costs distributions. When choosing a mode of transport, the company is guided by the following task - to achieve the most effective method of distribution as a whole at minimal costs. Transportation can have a significant impact on product sales. The faster a company delivers its goods, the greater the advantage it will have over its competitors.
The following types of transport are distinguished:
- Truck, automobile. This type is used most often. The advantage of this type of transportation is the ability to transport cargo along highways at any time, and the ability to deliver cargo “door to door.” The disadvantage is the inefficiency of transporting heavy and bulky commodities such as metal or coal.
- Railway transport. This type of transport is characterized by the ability to transport heavier and more varied cargo. But the disadvantage is that it is impossible to deliver goods precisely to the consumer via railway tracks.
- Water transport. This is the cheapest form of transport. This type mainly transports goods such as oil, coal, ore, cotton and timber. The downside is that the ships are slow and the sailings are not frequent. This may also be accompanied by unnecessary costs associated with the delivery of goods to the port and damage to goods.
- Air Transport. This is the fastest mode of transport. The disadvantage is the restrictions on the size and weight of the cargo. Also, airports are located in certain places, flights depend on weather conditions.
- Pipelines. This type of transportation is used to deliver gasoline, natural gas, coal or wood chips in a liquid medium. But this transportation is very slow.
Transport can have a huge impact Negative influence on environment: noise from airplanes and cars, emissions of gases, destruction of forests for road construction, pollution of oceans and seas as a result of damage to tankers carrying oil, etc.
Elena Ivanovna Mazilkina
Seven steps to success or how to promote your product to the market
INTRODUCTION
One day, Yuri Caesar decided to invite guests and treat them to an extraordinary dinner. He called his cook and ordered him to prepare something that could surprise the guests. It's lunch time. The cook brought in a huge dish of crayfish. “How,” the Romans laughed, “do you want to surprise us with this.” “Look, they are boiled, but at the same time they are all moving,” the cook answered. The Romans were shocked. After dinner, Caesar asked the cook how he achieved this. The cook replied: “Very simple, I put one crayfish in the middle, which moved and made the rest move.”
Modern stage economic development The country is characterized by the fact that the main task of the entrepreneur is to use the intellectual and physical abilities of people in order to transform raw materials into products that meet certain social needs. However, the products obtained as a result of production activities cannot yet be considered a product, which is formed by the efforts of many structural divisions of the organization. First of all, of course, through the efforts of the marketing service.
The emergence of new needs, constant increase incomes of the population and the development of new production technologies lead to the fact that more and more diverse goods appear on the market. Of course, the manufacturer expects that his product will find its buyer and will help maintain an appropriate level of turnover. Marketing tools such as advertising, sales promotion, public relations, personal selling, branding, exhibitions and fairs, sponsorships and integrated marketing communications at the point of sale can be used to accelerate this process.
The book we bring to your attention consists of seven steps, suggesting a sequence of actions in the process of promoting a product to the market.
Step one of Product Research allows you to determine what you are going to sell.
Step two, “Consumer Research,” is who you are going to sell your product to.
Step three, “Studying your competitors,” allows you to understand what difficulties you may encounter when selling your product and how you can avoid it.
Step four, “Promotion Complex,” which includes modern promotion tools, makes it possible to determine by what means you can promote your product.
Step five "Formation" competitive advantages» reveals ideas about what makes your product different from competitors' products.
Step six “Cost Analysis” makes it possible to determine the amount Money necessary to implement planned activities with maximum efficiency.
Step seven, “Choosing a promotion strategy and determining its effectiveness,” summarizes all the actions taken and brings you to the idea of how best to promote your product on the market.
STEP 1. PRODUCT RESEARCH
Consumer value of the product
PRODUCT- is a product of labor produced for sale, with the purpose of exchange for other products of labor or money on the market.
During the exchange process, a product acquires two properties:
– the ability to satisfy any human needs, to be useful to the consumer, i.e. have use value (social utility);
– the property of being exchanged for another product or money, i.e. have exchange value.
CONNECTION OF NEEDS– this is the influence of an already satisfied need on the emergence of a new one. The formation and development of needs is influenced by geographical factor, to which ethnic, religious and natural-climatic types of consumer behavior gravitate or social factor, manifested in the fact that part of the needs is determined by a person’s belonging to one or another social group. Needs must also be assessed based on time, which helps to identify and evaluate sales prospects.
The more fully a product meets the consumer’s desires, the more successful the manufacturer will be. In accordance with the concept of modern marketing, a manufacturer must find potential consumers, find out their needs, and then create a product that satisfies these needs as fully as possible.
Therefore, the buyer always looks for the value of a product in its usefulness to him.
Obviously, goods that have the highest utility, such as food, should have the highest value. However, this relationship is not true. This dependence was called “Smith’s paradox” in honor of the author who substantiated this dependence. If the value of a product depends on its utility, then why are goods that have normal conditions the highest beneficial effect (the same food products) are valued lower than goods whose usefulness for a person is relative, for example a diamond. This paradox explains the law of marginal utility, according to which the value of material goods is determined by the amount of benefit of this good for a particular person. MARGINAL UTILITY - This is the utility of one unit of the available supply of a given type of product. Consequently, the marginal utility of a thing for any person decreases with each increase in the quantity of it that is at his disposal in a given period of time. The value of a unit of any product is determined by the degree of importance of the need that is satisfied with the help of this product. The value of a product is determined by subjective ideas about the marginal utility of the last unit of the product available. The utility of goods when they are abundant is approximately zero. The opposite situation is observed in conditions of shortage.
Each consumer establishes his own order of preferences in relation to goods available on the market. It is assumed that consumer behavior is determined by intelligence and intelligence, i.e. has the properties of rationality and consistency in the actions performed.
To determine the significance of individual characteristics of similar products, it is recommended to complete the task below.
To complete the task, it is necessary to have two samples of different brands of the same type of product, performing the same consumer function and intended for the same customer segment.
Assign labels “A” and “B” to each of the product samples. When performing further expert assessment, you should move away from your own opinion and try to give a generalized assessment that other buyers of this product could give.
Determine the list of attributes (indicators) that are taken into account by consumers when purchasing this type of product (it is not recommended to consider price as a parameter, since it is the parameter being sought).
For each sample, determine the degree of presence of attributes on a ten-point scale. Use your idea of an ideal product of this kind as a standard for comparison.
Calculate the weighted score for each indicator as the product of the weight coefficient and the parameter score.
Calculate the estimated use value of each option as the sum of the weighted estimates.
Calculate the average use value for the two goods.
Determine the coefficient of change in the price of each product as the ratio of the individual assessment of use value to the average.
Determine the recommended price for each product sample. To do this, first give an expert assessment of the average market price prevailing in the market for goods of a certain type. Determine the recommended price as the product of the individual coefficient and the average price.
Classification of goods
According to the nature of use, goods are divided into consumer goods and industrial goods
Consumer goods according to the degree of durability and material tangibility they are divided into:
DURABLE GOODS– material products that can withstand repeated use (refrigerators, clothing);
DURABLE GOODS– material products that are completely consumed in one or several cycles of use (soap, food);
SERVICES– objects of sale in the form of actions.
Consumer products based on the purchasing habits of consumers are divided into:
EVERYDAY GOODS– products that consumers usually buy frequently, without thinking, with minimal effort to compare them with each other (tobacco products, newspapers, food). They are divided in turn into:
– basic goods of constant demand– goods that people buy regularly;
– impulse buy products– purchased without any prior planning. Usually sold in many places and consumers never specifically look for them:
– emergency supplies– purchased when there is an urgent need for them.
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The history of Procter & Gamble began in 1837, when William Procter and James Gamble with my own hands They made candles and made soap. Products developed in laboratories and first introduced by the company at one time revolutionized the consumer market. These include:
– Ivory soap;
– the first soap intended for washing machines Ivory Flakes;
– the first synthetic laundry detergent Chipso;
– Dreft powder;
– Tide, Ariel, Dash
- market leader after the war toothpaste Cross;
– in 1961 produces the famous Pampers;
– later sanitary pads Always, Alldays, Tampax were introduced to the market.
Later the following were released onto the market:
– Ace bleach;
– Comet, Fairy cleaning products;
– shampoos Head&Shoulders, Pantene Pro V, Wash
– Safeguard soap, Camey
– Folgers coffee;
– Pringles chips;
– low-calorie Olean oil.
In 1980-90 emerged as a major manufacturer of perfumes and cosmetics Max Factor, Laura Biagiotti, Hugo Boss.
Currently, the company produces more than 40 product groups, its product range includes more than 300 items. The company has branches, production and research centers in more than 50 countries.
2. PRE-SELECTION PRODUCTS– goods that the consumer, in the process of selection and purchase, compares with each other in terms of suitability, quality, price and design (furniture, clothing);
3. GOODS OF SPECIAL DEMAND– goods with unique characteristics and individual branded goods for the purchase of which a significant part of buyers are willing to expend additional effort (specific brands fashionable clothes, perfume, etc.);
4. GOODS OF PASSIVE DEMAND– goods that the consumer knows about, but does not think about purchasing (insurance).
Industrial products include:
MATERIALS AND DETAILS– goods that are fully used in the manufacturer’s product. They are divided into:
– raw materials, which includes Natural resources and agricultural products;
– semi-finished products and parts, representing either material components (iron, yarn, cement) or components.
CAPITAL PROPERTY– goods partially present in the finished product:
– permanent structures represent buildings (factory and administrative buildings) and standard equipment (machines, computers);
– auxiliary equipment includes movable plant equipment (hand tools, forklifts) and office equipment.
3. SUPPORTING MATERIALS– objects not present at all in the finished product. There are two types:
– working materials(lubricating oils, writing paper);
– materials for maintenance and repair(paints, nails).
4. BUSINESS SERVICES are divided into maintenance services and repairs, as well as consulting services.
Product life cycle
In economic science, the phenomenon of periodic fluctuations in the volume and duration of production, as well as product sales, is called ECONOMIC LIFE CYCLE OF A PRODUCT or PRODUCT LIFE CYCLE.
The concept of the product life cycle was first published by the American marketer T. Levit in 1965 (Fig. 1).
The life path of a product has various stages, each of which requires the enterprise to have appropriate strategies and tactics of market behavior.
1. Product research and development stage . This stage is considered to be zero and cannot be observed on all curves. The stage is characterized by large investments in carrying out marketing research to identify consumer preferences and develop a new product that meets the identified requirements. This stage also includes the costs of production of goods (purchase of necessary raw materials and equipment).
2. Stage of introducing the product to the market . Starts from the moment the product goes on sale. The procedure for introducing a new product to the market takes a lot of time and sales during this period grow slowly, which may be due to:
– delays in expanding production capacity;
– the complexity of the product distribution process;
– the client’s reluctance to give up his habits;
– in the case of an expensive product;
– a small number of people are able to purchase this product.
At this stage, the company either incurs losses or profits are small due to insignificant sales and high costs of organizing sales. Sales promotion costs reach their highest level.
There are few manufacturers at this stage and they produce only basic versions of the product, since the market is not yet ready to accept its modifications. Firms focus their sales efforts on consumers who are most prepared to make a purchase, usually representatives with high level income. Prices at this stage are increased.
Rice. 1. Product life cycle
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The phenomenon of falsification of commercial products has acquired particularly large proportions in recent decades. The greatest concern began to be caused by the rapid spread of so-called “pirate production” in the world, when low-quality products from “shadow” manufacturers began to enter the market under the trademark of companies well known for their quality. In fact, there is not a single industry in the world that is completely protected from fraudsters.
The UK and Italy are known for the widespread production of counterfeit fashion items, where labels were sewn onto cheap goods - shirts, jeans, T-shirts. It is common practice for the goods and labels to be supplied separately and then, immediately before sale, the labels are sewn onto the clothing. And the quality of fakes is improving noticeably every year. In this case, it is extremely difficult to detect a fake
3. Growth stage . If a new product takes root in the market, demand begins to grow. The first buyers will continue to buy the product, and other buyers will follow their example. At this time, new competitors appear on the market and offer products with new properties, which will expand the market. An increase in the number of competitors leads to an increase in sales from factories. Prices remain the same or decrease slightly as demand increases. Firms' spending on stimulating demand remains the same or increases slightly to counter competitors. Profits begin to rise slowly as sales promotion costs are concentrated on high volume sales while reducing production costs. To extend the growth phase, a firm can use several strategic approaches:
– improve the quality of a new product, give it additional properties, release new models;
– consolidate new market segments;
– use new distribution channels;
– reduce prices to attract additional buyers.
4. Maturity stage . At this stage, the growth rate of product sales will begin to slow down. This means that many manufacturers are stockpiling non-productive goods. Competition is intensifying. Competitors are increasingly resorting to selling at discounted prices and below list prices. The costs of advertising and research and development (in order to create improved product variants) are growing. All this leads to a decrease in profits. Weak competitors drop out of the fight, leaving only entrenched rivals.
The company's strategy at this stage should be based on modification of the market, product or marketing mix.
Market modification - it is necessary to increase the consumption of an existing product due to new users and new market segments, more intensive consumption by existing customers, possibly due to repositioning of the product.
Product modification - includes modification of the characteristics of your product such as quality level, properties and appearance in order to attract new users. The quality improvement strategy aims to improve functional characteristics such as durability, reliability, speed, taste. This approach is effective in cases where quality can be improved, buyers believe statements about quality improvement, a large number of buyers want improved product quality.
The enhancement strategy aims to give a product new properties that make it more versatile, safer and more convenient.
The external design strategy aims to increase the attractiveness of the product.
Modification of the marketing mix - sales promotion using one or more elements of the marketing mix. For example, you can lower the price, negotiate preferential deals with sellers, issue coupons entitling you to a small discount, distribute gifts and competitions, or offer new types of services.
5. Saturation stage – cessation of sales growth and profit growth. Retail outlets have a full range of products at different price levels.
The stages of maturity and saturation are sometimes combined together.
6. Decline stage. A stage characterized by a decrease in sales and profits. The decline in sales can be explained by advances in technology, changing consumer tastes, and increased competition from rivals.
Many firms are leaving the market. Those who remain can reduce the range of product offerings, abandon small market segments and ineffective distribution channels, and further reduce prices. The company needs to identify products that have entered the decline stage through regular analysis of sales figures, market share and cost levels.
The manufacturer needs to know at what stage of the life cycle his product is in order to competently plan the amount of expected profit, expected costs and possible marketing tools.
Product packaging
PACKAGE It is a shell in which the goods are placed, and is intended for the safety of the cargo, its identification, and performs advertising, information and other functions depending on the target, product and communication policy.
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The struggle for customers is being waged on all fronts, and a beautiful “wrapper” is one of the inexpensive ways to fight. From appearance Almost 50% of sales success depends on products. The label does not have to be catchy; it all depends on what audience the product is intended for. Red color stimulates the appetite. For food products the associative series is very important. The label contains information about the composition of the product and the necessary information about the manufacturer. Often the terms of competitions held for successful promotion are placed on the labels. There are some traditions in label production. For example, in the production of beer labels, gold embossing is almost always used. This increases the competitiveness of goods 2-3 times higher than usual. An artist developing a label design must know all the technology of printing production, the capabilities of a specific printing house, types of label papers, paints and their possible combinations, advantages and disadvantages. Label European quality it is impossible to create without three components: imported equipment, high-quality European paper and the same paints. Today the label serves business card goods. What can be easily saved on quality can also easily be lost due to low sales.
Packaging performs five main functions:
Notes
See: Kotler F. Fundamentals of Marketing. / Per. from English Under general Ed. Penkova E.L. – M.: PROGRESS, 1990.
End of free trial.
